On Monday the U.S. Treasury announced new guidelines to streamline short sales and help families facing forclosure. With my special training as a Certified Distressed Property Expert  I can help families avoid foreclosure and get back on the track to financial stability.  

Avoiding forclosure just got easier… is a post from: Andover | North Andover Real Estate & Home Town News

 If you're facing a financial hardship or are at risk for foreclosure on your home in Andover, consider the following alternatives.

1. Reinstatement: This option is extremely simple, but the most difficult. The homeowner asks the mortgage company the total amount owed and pays it all, including fines and fees. It does not require approval, and lenders will allow this up to the day before the final foreclosure sale.
2. Forbearance or Repayment plan: This is when a homeowner negotiates repaying their back payments over a period of time. Usually, the homeowner makes their current payment as well as a portion of the back payments owed. Most lenders require homeowners to be qualified for this option.
3. Mortgage Modification: This plan is when either the interest rate of the loan, the principal balance or the term of the loan is reduced. The result is generally a lower, more affordable payment for the homeowner. Homeowners need to qualify for this option and must supply all necessary documentation, while the lender has to be actively pursuing modifications.
4. Short Sale:  Contact me your Certified Distressed Property Expert to negotiate the sale of your home. In many cases the mortgage company will allow a short sale which includes all realtor and legal fees.

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert (CDPE)  has extensive training to help homeowners in distress.  By engaging the services of a CDPE you're chances of completing a successful short sale improve significantly.
2. Banks Don’t Accept Short Sales. In reality, banks, too, would like to avoid foreclosure whenever possible, but it is critical that your realtor has special training the process.  Many attempted short sales fail simply because the process was mishandled.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency, not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales and an experienced, knowledgable real estate agent understands short sales are becoming synonymous with a “good deals.”
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

• Time: There never seems to be enough of it when conducting a short sale. Your agent needs to understand the local foreclosure laws so that you have an estimated timeline. Also, be sure that your agent can communicate effectively with your lender so you can stall a foreclosure by getting more time to negotiate a short sale. Always provide your agent with accurate information as to how many payments you may have missed and any correspondence you have from your lender.
• You must submit the deal properly: Following the directions that you receive for submission is imperative. If you are asked to fax your file, then fax the file and send a hard copy in the mail. If they ask for two copies, send two, and so on. If you have a contract and have gathered all of your information, the last thing you want is for no one to see it and the deal falls apart.
• The buyer’s offer is too low: A short sale is not a fire sale! A lender still will only approve a deal that is more attractive to them than a foreclosure. Make sure you present only the most properly negotiated offers.
• The buyer’s contract is not strong enough: You may find yourself with offers from unqualified buyers. Don’t forget to ask for verification from a buyer that they have been pre approved for financing.

Having the right team of professionals on your side is especially important it you are considering buying OR selling a home as a short sale.  The paperwork, procedures, timelines and communication between parties is extraordinarily complicated.  Be sure to find a trusted and knowledgeable realtor to help you.  Ask lot's of questions and if possible find a realtor such as myself who has this training and knowledge to assist you.  while the national average success rate for short sale closings is less than 20-25%, short sales managed by a Ceritfied Distressed Property Expert such as myself, have a national success rate of about 80%.

• The property is not priced correctly: Be sure that your agent takes you through a detailed listing price strategy so you know exactly where your home should be priced due to its current condition, the other current sales in your area, and how much time you have left to sell.

• The short sale Proposal is not fully completed: Be sure that you fully understand the short sale process and exactly what your lender is looking for, so that you can present a complete and cohesive Proposal to your lender.

• Not Enough Follow Up and Communication: Make sure that your agent is following up with everyone involved during each step of your short sale, so that you know right away if your file has been delayed.

Certified Distressed Property Expert

If you’re worried that you may be facing foreclosure on your home, there may be a solution for you. Very few realtors have the experience and knowledge to help distressed homeowners through the the complicated maze of procedures, strategies, and yes, paperwork to help the bank help you, the homeowner.  I have the expertise and certification it takes to help homeowners avoid foreclosure whenever possible. Remember that time is critical and the longer you wait the more difficult it will be to avoid foreclosure.  Here are 5 important reasons to avoid foreclosure!

1. The homeowner will ALWAYS have to disclose a foreclosure on a mortgage application.

2.  Credit scores will be lowered by 300+ points affecting the borrowers ability to get car, apartment, credit card and other financing.

3.  A foreclosure is one credit report item that is almost impossible to be “repaired.”

4.  Military and government clearance could be at risk with a foreclosure.

5.  Many employers run credit reports for prospective employers and foreclosure is one of the top items that may put a potential new hire in jeopardy.

If you are worried about a foreclosure on your home, contact me at RE/MAX Partners in Andover, MA for a confidential and complimentary consultation.

Worried you may be facing foreclosure? Talk to me first, your Andover Certified Distressed Propery Expert. is a post from: Andover | North Andover Real Estate & Home Town News

• In this type of transaction there is an additional party involved besides the buyer and the seller; the bank. The bank must approve the sale, and this can make the time to close much longer than usual. Expect it to take anywhere from four to six weeks perhaps even months.  And once the bank’s approval is granted, they will expect you to be ready to close as soon as possible.
• You will need to pay for your own inspection, and since the sale is “as-is”, this means that no repairs will be done and there will be no closing cost credits for repairs.
• You will also need to pay for your own appraisal. The bank will do their own as well, and have been known to reject the sale based on their appraisal. Also, they may ask the buyer to raise their offer before approving the sale.
• These things are obvious risks to the potential buyer, as you could end up out of your inspection costs.
• Deferred maintenance on the home is a potential risk for the buyer. Consider that since the mortgage payments were not being made, it’s highly likely that the homeowner was not able to afford regular home maintenance.